Holding over 60 trillion dollars in assets! State Street Bank announces: Launching tokenized fund services by the end of this year

State Street plans to launch tokenized fund services in Luxembourg by the end of this year, integrating digital and traditional assets into a unified institutional framework, with full lifecycle management handled by its platform.

The custody giant State Street, which holds more than $60 trillion in assets, announced on Tuesday that it expects to roll out “tokenized fund” services in Luxembourg before the end of this year—signaling that Wall Street is speeding up its effort to move traditional fund infrastructure onto the blockchain.

According to an official statement, the service will be provided by State Street Investment Services, aiming to expand the bank’s capabilities in fund administration and asset custody.

Notably, State Street’s highlight is its “dual-track approach.” They understand that tokenized assets cannot fully replace traditional funds overnight. Therefore, the biggest selling point of the new product is enabling seamless integration of tokenized funds and traditional financial instruments within the same institutional framework.

State Street said the new service will run through its digital asset platform, covering the entire lifecycle of tokenized funds—from issuance and management to custody. More importantly, regardless of whether the fund structure is digital or traditional, clients can operate through a single interface and enjoy the same level of risk control and compliance governance.

It is reported that State Street Global Advisors will become one of the first adopters of this system. Angus Fletcher, Global Head of Digital Asset Solutions at State Street, said: “This launch reflects our concrete progress in infrastructure buildout, successfully enabling digital assets and traditional assets to operate in collaboration within a unified institutional framework.”

As for why the initial launch site was chosen in Europe, State Street explained that Luxembourg has an extremely mature fund ecosystem and comprehensive legal regulations that support a “digital native fund” structure.

However, how the service ultimately goes live still depends on whether local regulators give the green light and on the readiness of internal systems.

Targeting the RWA Blue Ocean, Traditional Finance Accelerates Market Entry

As one of the world’s largest providers of institutional financial services, as of the end of Q1 this year, State Street’s custody and administration assets totaled $54.5 trillion, while its assets under management reached $5.6 trillion.

State Street’s latest move was not without precedent. The bank previously worked with Swiss digital asset company Taurus to actively develop digital asset custody services, and senior executives have also publicly said that institutional investors will continue to increase their exposure to digital assets in the coming years.

In fact, the narrative of “asset tokenization” is sweeping through the global financial sector. Ark Invest and Standard Chartered both predict that the tokenized real-world assets (RWA) market will see explosive growth over the next several years, soaring to the trillions of dollars. Among them, tokenized funds, U.S. Treasuries, and money market products are expected to be the main engines driving this surge.

State Street’s latest positioning is designed to seize this tokenization boom by laying out “market infrastructure” in advance.

• This article is reprinted with permission from: 《BlockBeats》
• Original title: 《Wall Street Custodian Giant Takes Action! State Street: Launching “Tokenized Fund” Service by End of This Year》
• Original author: Block Sister MEL